ACC/290 Financial Accounting Free Essays

Course: ACC/290 Financial Accounting, Fifth Edition by Kimmel, Weygandt, and Kieso Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse P3-7B, Prepare a correct trial balance. This trial balance of Schumaker Company does not balance. SCHUMAKER COMPANY Trial Balance May 31, 2010 Debit Cash $6,340 Accounts Receivable Prepaid Insurance 700 Equipment 8,000 Accounts Payable Property Taxes Payable 750 Common Stock Retained Earnings Service Revenue 7,690 Salaries Expense 4,200 Advertising Expense Property Tax Expense 900 $28,580 Credit $2,750 4,100 5,700 6,000 1,100 $19,650 Your review of the ledger reveals that each account has a normal balance. We will write a custom essay sample on ACC/290 Financial Accounting or any similar topic only for you Order Now You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $100 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 $7,960 , respectively. and 3. A debit posting to Salaries Expense of $400 as omitted. 4. An $800 cash dividend was debited to Common Stock for $800 and credited to Cash for $800 $350 purchase of supplies on account was debited to Equipment for $350 5. A and credited to Cash for $350 $450 for advertising was debited to Advertising Expense for $45 6. A cash payment of and credited to Cash for $45 7. A collection from a customer for $240 was debited to Cash for $240 and credited to Accounts Payable for $240 Instructions: Prepare the correct trial balance, assuming all accounts have normal balances. Note: The chart of accounts also includes the following: Dividends and Supplies. ) Cash Accoun ts Receivable Prepaid Insurance Equipment Supplies Accounts Payable Property Taxes Payable Common Stock Dividends Retained Earnings Service Revenue Salaries Expense Advertising Expense Property Tax Expense SCHUMAKER COMPANY Trial Balance May 31, 2010 Debit Credit $6,285 $2,330 800 7,650 350 4,110 750 6,500 800 6,000 7,960 4,600 1,505 1,000 $25,320 $25,320 Week+2+Group+Work(1). xls, Page 1 of 1, 11/19/20121:18 PM How to cite ACC/290 Financial Accounting, Essay examples